What Did TPG Discover in Billabong’s Data Room?

Since neither TPG or Billabong International are disclosing what led to the buyout firm’s abandonment of a takeover, Citi analyst Craig Woolford has offered a couple of answers.

“The fact TPG spent six weeks looking at the business and felt proceeding with a takeover was not worthwhile is a concern,” mused Mr. Woolford, adding that Bain Capital took just one week to reach the same conclusion.

The broker believes TPG was unable to gain comfort over the visibility for future earnings due to the underlying health of the Billabong brand or the sales decline in Europe.